City whistle-blower case reheard

A banker has won a landmark court case allowing her to take her former employer to a tribunal over claims she was victimised as a "whistle-blower".

Diana Woodward, 49, of Surrey, accused Abbey National of trying to destroy her career after she left the bank in 1994.

She began a £1m damages case in 2004, but an Employment Tribunal said it had no jurisdiction as the sabotage claims happened after she was made redundant.

An appeal ruling has said laws to help whistle-blowers can apply to ex-staff.

He who blows the whistle should be protected when he becomes victimised for doing so, whenever the retribution is exacted Lord Justice Ward

Lord Justice Ward, heading a panel of three appeal judges, sent the matter back to a tribunal, saying the Employment Rights Act can protect former, as well as current, employees against victimisation for making disclosures which are in the public interest.

Mrs Woodward, from Weybridge, earned £100,000 a year when she became head of financial institutions for Abbey National's Treasury Services in 1991.

She said that during her employment she "voiced her concerns on numerous occasions" over the handling of funds of institutional investors.

On being made redundant, Mrs Woodward said she was told she would "never work in the City again".

She suspected Abbey of sabotaging several job applications, but said it was only when she was not given a reference for a Bupa job in 2002 that she started a compensation claim.

'Delighted' at decision

Lord Justice Ward said on Thursday: "It simply makes no sense at all to protect the current employee but not the former employee, especially since the frequent response of the embittered, exposed employer may well be dismissal and a determination to make life impossible for the nasty little sneak for as long thereafter as he can.

"He who blows the whistle should be protected when he becomes victimised for doing so, whenever the retribution is exacted."

Mrs Woodward was delighted with the appeal decision, her solicitor Alex Bearman said.

"This ruling will stop former employers being able to make life difficult for former employees."

A spokeswoman said Abbey was "continuing to dispute the merits of the actual claims", but could not comment any further because of the ongoing nature of the case.

Mrs Woodward had a miscarriage during her time with Abbey and a previous complaint of sex discrimination surrounding her redundancy was settled without any admission of liability in 1996.